Simmons First National Corporation · NASDAQ:SFNC
Simmons First National — Investor Presentation (July 2014)
27 slides from Simmons First National's investor presentation, Jul 25, 2014
Slide 1: Investor Presentation
_ Investor Presentation 7 Simmons First __ National Corporation NASDAQ-GS: SFNC
Slide 2: Forward-Looking Statement
tatement: Forward-Looking Statement yi fard-looking amended. for mended, r ill," “would,” “could” or “intend; t quallt ‘anticipate,” “estimate, pect,” “foresee, negatives of ithout limitation, perience, liquidit net Interest llowance f pital re income t i net Interest re market risk, earning: nue, i
Slide 3: Simmons First at a glance
“Ticker: SFNC *°$8 Billion in assets © 1 a In business since 1903 rvsur- cosa Hescauarers “4 State Pro Forma Footprint “ (Arkansas, Kansas, Missouri and Tennessee) “$180 million nationwide Credit Card Portfolio “Large Trust preservall in Arkansas $3.5 Billion total Trust Asse 1) Pro Forma including
Slide 4: Q2-2014 Highlights
Q2-2014 Highlights * GAAP EPS of $0.60, up 50% * Core EPS of $0.56, up 44% A 349, core NIM 3.74% up 28% up 10.6% * Delta Trust ve nace AR) = First State (Ten ee) = Liberty ani (Gprneald TN) $455 million $2.0 billion $1.1 billion
Slide 5: Strategic Acquisition: Delta Trust
Strategic Acquisition + DELIA TRUST < Ecsngroae” gut sone st & Bank $485 million (2 05/51) High single-digit EPS accretion Internal rate of return of 22% f In-market transaction Familiar customer base Strong pro forma capital ratios Attractive market demographics See A se Trust Assets)
Slide 6: Strategic Acquisition: First State
Strategic Acquisition urchase Price $245 Q- First State V7 ot ee Double digit EPS accretion Strong pro forma capital ratios high-quality partner support
Slide 7: Strategic Acquisition: Liberty Bank
Strategic Acquisition * Purchase Price : Closing Dats Qa? * Total Ass $1.1 ‘hilfon (as of 3/31/14) Meaningful EPS accretion Internal rate of return ~19% ven Familiar markets 1 1 Strong pro forma capital ratios Arkansas
Slide 8: Pro Forma Total Assets
Pro For ma Total Assets €3 $8 Billion Company! First State 92 LIBERTY BANCSHARES, INC $4.4 Billion $0.5 Billion $2.0 Billion $1.1 Billion
Slide 9: Footprint & Regional Structure
Footprint & Regional Structure Tennessee Region $1.1B Loans $1.68 Deposits B)| Central\NEAR Region [il $1.38 Loans $1.9B Deposits
Slide 10: Timeline for Integration
Timeline for Integration Convert MNB, ii Bt y Regulatory Approval (veita Trust) sh y File S-4 (celta Trust) File $-4’ , Close on Delta Trust (Delta Trust Shareholder meeting) Delta Trust Conversion Shareholder i Close on First State Close on Liberty Bank Convert Liberty Bank Convert First State
Slide 11: Proven Acquirer and Integrator
Proven Acquirer and Integrator’
Slide 12: Pro Forma Balance Sheet
Pro Forma Balance Sheet €3 3/31/14 3/31/14 Standalone Pro Forma Balance Sheet Data: Cash and Cash Equivalents $522,136 $681,984 1,041,589 2,367,777 4,396,647 3,707,048 406,672 913,669 $24.93 $30.87 19.23 18.04 lue per Sha STE Book Value per Share Capitalization: TE/ TA TCE / TA Leverage Ratio $ in t
Slide 13: Pro Forma Income Statement
Pro Forma Income Statement 2013 2013 Standalone Pro Forma Net Interest Income Provision for Loan Losses. Non-interest Income Non-interest Expense -Tax Inc Provision for Income Taxes Net Income Net I Diluted EPS Core Diluted EPS) $ in thousands, except per share (1)Core EPS excludes nonrecurring item
Slide 14: Revenue Opportunities
Revenue Opportunities €3 sinmeneson (J ADENTUS, FirstState Je “UBERTY Credit Cards Trust Investments Agri Lending Equipment Finance Insurance Consumer Finance SBA Lending “None of our i timates include the potential benefits of expanding these business lines
Slide 15: Investment Profile
Investment Profile SFNC Standalone SFNC Pro Forma Market Data as of 6/30/14 Common Shares Outstanding 16,311,263 Market Capitalization % Institutional Ownership % Index Ownership. Valuation & Per Share Data 2015E EPs P / 2015E EPS TBVPS P / TBVPS in millions, except per share # .) SFNC Standalone ba
Slide 16: Why Simmons First
Why Simmons RBEr = Multiple paths to above average ig % M&A accretion a “ Organic legacy loan efewiti + Rising interest rates « Experienced and deep management = Exceptional balance sheet * Consistent historical earnings performance « Attractive dividend yield Committed to delivering a sophisticated
Slide 17: Supplemental Information
Supplemental Information 7
Slide 18: Loan Growth (Quarter over Quarter)
Loan Growth (Quarter over Quarter) Legacy Loans (exciuded student Loans) $1,868 | $1,649 13% Acquired Loans, FDIC Covered 122 164 (26%) Acquired Loans, Non-Covered 399 64 528% Total Loans $2,389| $1,877 27% 8 loan new hires in 2013 Metropolitan: (4 Kansas, 3 Missouri and 1 Little Rock) Hew loanchi (
Slide 19: Combined Loan Portfolio
Combined Loan Portfolio Consumer Construction 0% 1% Agricultural 10% 2% ‘Single-Family Residential 26% Pro Forma as of 3/31/14 alate Real ne(Sin alls 48% nstructio 2 se aan Residential Commercial Real Estate Commercial Agricultural Consumer on FSB 7 Liberty 3 Pro Forma 342 Total
Slide 20: Combined Deposits
Combined Deposits E Simmons _Delta (Sin millions) irst Trust Community First Liberty Bank Combined Non-Interest Bearing Interest Bearing Transactions Time Deposits Total Deposits Non-Interest Bearing\Deposits Non-Time Deposits\Deposits as of 3/31/14
Slide 21: Exceptional Asset Quality
Exceptional Asset Quality SFNC Legacy Portfolio NPL @) - SENG 1,74 1.42 NPL @) - All US Banks () 3.36 NPA - SFNC NPA - All US Banks 1.18 3.53 | | [an | | 0.96 2.91 Net Charge-offs - SFNC ( | 0.30 0.26 Net Charge-offs - All US Banks | 0,62 | 1.64 | 1.12 (1) Source: SNL Financial (2) Excludes Credit C
Slide 22: Pro Forma Loan and Credit Coverage
Pro Forma Loan and Credit Coverage Legacy Loans | Allowance for Loan Loss Loans acquired, not covered by FDIC Loan Discount ired, | Loan Discount Total Loans (before discounts) 2,259 | Total Allowance and Credit Mark 68) | (180) | $ in millions
Slide 23: Asset Quality - Credit Card
Asset Quality - Credit Card History of Strong Credit Quality (Net Charge-offs) 12.00% Recession” 9.00% 6.00% 3.00% 0.00% errs 8 c) Industry source: Fe 79185 7 91 BS 7 O 1 B d
Slide 24: Consistent Dividend History
Consistent Dividend History & Current Dividend Yield 2.2% ($0.88 per share) "97 '98 '99 ‘00 '01 ‘02 ‘03 '04 ‘05 ‘06 ‘07 ‘08 ‘09 '10 ‘11 ‘12 '13 ‘14
Slide 25: 1-Year Total Return
1-Year Total Return (Dividends + Stock Appreciation) 6/30/13 — 6/30/14 SENG (+54.83%) SNL US. Bank (+19,0384) z & 3 & IW, a ~~ ehh po Y ahr Source: SNL Financial
Slide 26: Long-term Total Return
Long-term Total Return (Dividends + Stock Appreciation) snc (+79.18%) SNL US. Bank (5.89%) ® Total Return (%) MK ss PI ith al te pai . nye F, ‘ T T 2003 2010 2011 2012 Source: SNL Financial
Slide 27: Simmons First National Corporation
Simmons First __ National Corporation NASDAQ-GS: SFNC
Simmons First National — Investor Presentation (July 2014) on 6ix